The "Mortgage-free in 2025-30" club!

turtlemoose

You guys unsure about the interest thing, you need to check out SuperSecretSquirrel's diary here.

He's "mortgage neutral" - as in, he doesn't OP his mortgage in the traditional manner, instead he has amassed net assets to a value greater than the value of his outstanding mortgage. If he wanted, he could pay his entire mortgage off right now. However, his cash in the bank is earning MORE interest than his mortgage is costing him. So it's a no brainer. Well worth a read, even if you just do beginning, skim, end.

slicence

turtlemoose wrote: »

... check out SuperSecretSquirrel's diary here.

Wow, that's fascinating! I'll give it a more thorough read when not at work

pinkteapot

I'm also pro mortgage neutrality. It is the same as mortgage-free really. Before we moved to the big house we were briefly mortgage-neutral and it's an amazing feeling. Knowing you can pay it off if you fancy means you just don't feel the debt at all.

Technically this club can be a "mortgage free or neutral by 2025-30", because to my mind there's no real difference. If you can opt to pay the mortgage off tomorrow, you may as well be mortgage free I think?

Kelly - I feel really guilty saying this but the thread was aimed at people on a 2025-30 horizon. No-one has started other threads yet but you could do one gathering the 2020-25 gang? Of course you're welcome to join in the conversations and that - it's a public forum! - but the list is people on a 2025-30 timescale...

slicence

Mortgage neutrality sounds a lot like managing your own offset account. I was really interested in this before we applied for a mortgage, but there are so few on the market atm.

I guess I sort of manage my credit card accounts like this, I always have a high credit card balance 0% but can repay it with savings if necessary. Mortgage neutrality just sounds like a massive game of this! Haha!

Definitely food for thought.

helibob

slicence wrote: »

Mortgage neutrality sounds a lot like managing your own offset account. I was really interested in this before we applied for a mortgage, but there are so few on the market atm.

I guess I sort of manage my credit card accounts like this, I always have a high credit card balance 0% but can repay it with savings if necessary. Mortgage neutrality just sounds like a massive game of this! Haha!

Definitely food for thought.

I'm pretty much the same. I have a spreadsheet of my savings which includes a line that matches the balance of my credit card. At the moment, I can get higher interest rates on savings than my mortgage costs, so that makes sense to utilise.

Firegirl

I'm the same so I do a wee bit of both to keep me happy. I have stocks and shares ISAs that currently give me a much better return than what I'd save if I paid off my 0.99 mortgage rate, but for my sanity I need to see my mortgage reducing.

My other theory is that if I paid off my mortgage I might not be so disciplined to save. I also have an offset mortgage and I really like the flexibility of this. If I pay off £100 I save £23.75 of interest. Now if someone handed you £20 for saving £100 that would be quite a motivator!!!

choccielover

helibob wrote: »

I'm pretty much the same. I have a spreadsheet of my savings which includes a line that matches the balance of my credit card. At the moment, I can get higher interest rates on savings than my mortgage costs, so that makes sense to utilise.

Haha, me too.

It's sad yet strangely satisfying (and cash generating)

amycool

We were mortgage-neutral on the old house. I've always had a little graph linked to the spreadsheet that shows the debt vs savings. A little green line getting higher and higher and a little red line getting lower and lower! I've set it up to predict when they will cross, which is nice.

Once we adopt we'll be a one earnings household so I like the idea of having a nice chunk of savings in case OH were to get ill or lose his job. Knowing you could pay off the mortgage whenever is a really nice feeling. Got a while to go before then though...:)

lippy1923

Made my first proper OP this year. Been saving so much for my wedding which happens next month that I haven't actually made any physical OPs for ages. Its a good feeling.

£500 OP for July to report

choccielover

Well done Lippy. You must be so excited for the wedding now, enjoy the moment.

I managed to scare up an additional £37 out of my Santander interest and cash back this month as well as my usual so total OP of £160 this month I think.

Chocs